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I Have watched your lecture on IAS 37.in which you have said provsion is a liability where we not certain either the timing or amount of it and tnen yo have said contingent liabiliities might be a liabilty so here my question what is the difference between contingent liability and provision?
The amount of tax owing at the end of the year will be a provision – it will definitely be owing, but the amount will not be certain at the end of the year.
A forthcoming course case will be a contingent liability because whether or not we owe anything depends on the outcome of the court case – we might end up owing nothing.
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